Comments on: Larry Summers on Mian and Sufi

By: doombuggy

doombuggy — Mon, 09 Jun 2014 11:55:20 +0000

…consisted of transfers of resources to less-productive businesses, such as GM, Citigroup, and Solyndra.

Indeed, but we seem to have trouble finding productive businesses anywhere. And gov’t spending, at all levels, …sheesh. A local town is building a water storage tank… a year for construction? A proposed 9/11 memorial… 700 million? We spend so much for so little that soon we will be able to spend everything for nothing.

By: guybellingham

guybellingham — Sun, 08 Jun 2014 18:34:47 +0000

One thing is for sure, financial institutions to the brink, in the sense that their market value has soared to the maximum possible.

In 2007-2008, The Gift of The Greenspan Put, traded out “money good” US Treasuries for the most distressed (read toxic) of investments and confidence, that is trust, in the finanicial sector restored.

Through Global ZIRP, reinforced by pursuit of yield investing, we now have an Empire of Debt, more stunning, more spectacular then in 2007.

We are not going to have another housing crisis, we are going to have a financial crisis, as the debt implodes and as investors head to the stock market exit door.

A whole new system of government is coming; and it will be characterized by “democratic deficit”.

By: andrew'

andrew' — Sun, 08 Jun 2014 11:31:38 +0000

I wonder if the government is responsible to fix with dollars a problem it created with dollars. This would make me an odd Austrian but I’m fine with that. I believe the debt was incurred partly due to money illusions.

By: Lord

Lord — Sat, 07 Jun 2014 20:54:56 +0000

Debt and the broader distribution of it. A recession.